国际金融英文版CH4.pptxVIP

Chapter 4;Definition of the International Monetary System; The centerpiece of the system is to select an international currency as a medium of exchange in international settlements. Commodity money such as gold or silver were widely used in history. Gold or silver were inconvenient to carry and impractical in settlement. Commodity-backed money refers to the bank notes which are backed by gold or silver. The bank notes can be freely converted into gold or silver. ; Fiat money is inconvertible money that is made legal tender by government decree. The only thing gives the money value is the faith